University:
University College London
Course:
LAWS0006 | Public Law
Academic year:

2024
Views:

489

Pages:

5
Author:

Nam B.

A Path to Net Zero through Innovative Contracting and Collaboration Presented by: Prof. Ress Date: 28 November 2022 Context - A tender process leading into a contracting model that breaks barriers - What are the Net Zero barriers: • Emerging and shifting policy goals • No universal taxonomy on outputs or scope • Client expectation and expertise • Procurement of innovation • Market-readiness • Well-known contracting practices that cut across team aspirations and performance - If we know the challenges - we can rise and meet them! Pre-Procurement Procedures - Pre-market engagement and readiness: • Market health and capability assessment • Pre-market engagement activities - what can you do? • Stakeholder engagement • Expert involvement: where appropriate and as needed • Process and contract design (Public) Procurement Process: Documents need to clearly scope client requirements - Procurements suffer when incomplete information or there is not an appreciation from both parties as to where the "gaps" are - Indication of areas for innovation - Minimum requirements: what are the must-haves - • Technical solution • Performance criteria • Level of information required back from the market • Guarantees/assurances/warranties/insurances • Performance measurement processes and targets? Award criteria • Looking at priorities • Pricing models: you won't reach NZ at the end of a race to the bottom... Contracts That Link Outcomes With Processes - Gold Standard recommendations: • Collaborative procedures • Communication fora and protocols - underpinned with early warning • Contractual timetable: pre-construction and project-based • Early supply-chain involvement: not just T1 but beyond! • Design development process • Open-book pricing mechanisms • Performance measurement system that:  Highlights in-project performance  Feeds in to (organization-wide) ESG reporting requirements  Helps parties to continuously improve  Incentivizes correct behaviors throughout Case-study: UK Social Housing Decarbonizations Fund- Wave 1 Demonstrator Projects - Aim: to decarbonize the UK's social housing stock - "fabric first" approach - primarily focusing on external wall insulation - Consortium approach to funding: one "aggregator" - many participants - Funding deadlines (for Wave 1 and now Wave 2): challenging - Challenges: • Multiple clients with preferred supply-chain and procurement approaches • Innovative technical and delivery solutions • Volatile market/supply-chain • Risk and pricing approach • Timescales! WY Chavon Consortium: SHDF alliance - Consortium of 5 housing associations - Adopted FAC-1 and PPC2000 - Program of works between multiple clients, multiple contractors, Retrofit CoOrdinator, designers and supply-chain specialists - Same solution, same outcomes, same success criteria - Key to: • Appoint alliance contractors to deliver relatively new-to-the-market solutions on consistent contract terms • Integrated programming to avoid overheating the local market • Develop design and finishes from specialist supply-chains and feedback loop • Price development: two-stage open book due to the nature of the works